Space Traveler – Kid’s Car Seat Cover
DEAL
EPISODE SUMMARY
🕓 Air Date: March 13, 2020
Asking For:
$100,000 for 33,30%
Investor:
Barbara Corcoran
Deal:
$100,000 for 33.3% + $2/unit royalty until $100,000 is repaid
PRODUCT SUMMARY
The Space Traveler is a device designed to separate kids in the car, creating individual atmospheres to prevent fighting and distractions during family trips.
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Background Story
Rachel Lincoln and Kristine Pruske, mothers from San Antonio, Texas, came up with the idea for The Space Traveler during a family trip. Frustrated with the chaos and fighting among their kids in the car, they initially experimented with a collapsible laundry hamper and later a collapsible dog kennel. The breakthrough came when they created The Space Traveler, a portable barrier that separates kids in the car, providing each child with their own space.
The idea emerged from a need for a product that could maintain peace and harmony during family journeys, especially with the challenges of distracted driving. The founders, Rachel and Kristine, both mothers, have a background in designing products that address parenting challenges.
Kristine started conceptualizing ideas about a decade ago, and Rachel, also a mother, assisted in refining those concepts. Despite facing challenges and rejection, including an alleged idea theft incident, they persevered. Their resilience and creativity led to the development of The Space Traveler, aimed at improving family road trips.
The Product
The Space Traveler is a portable and collapsible barrier designed to create separate spaces for children during car rides. It features seatbelt-access slots, allowing children to use it without a booster seat, and latch-access spaces for compatibility with car seats.
The device is versatile, accommodating various car configurations. The product is collapsible, making it easy to store when not in use. Priced at $29.99, the founders anticipate a production cost of $17 to $18 per unit.
The Space Traveler is presented as a solution to the common issue of siblings fighting in the car, providing visual and physical separation. The founders propose potential character licensing, such as police car or fire truck designs, to enhance the product’s appeal.
How It Went
The company’s position before Shark Tank
The Space Traveler is in the early stages, with two prototypes and no sales yet. The founders have faced challenges in the past, having pitched previous product ideas to companies in New York, only to discover their product on the shelves without a deal. Despite setbacks, they continued their entrepreneurial journey and presented The Space Traveler on Shark Tank. Currently, the company is pre-revenue, and the founders express their belief in the potential success of the product.
Barbara Corcoran, one of the sharks, raises concerns about the lack of sales and public response. The founders reveal that they have a provisional patent in place but admit to not conducting thorough patent searches. The Space Traveler founders share their vision of character licensing and express interest in creating themed designs for the product, such as police cars or fire trucks. The sharks, however, question the viability of the product in a competitive market, especially without proven sales.
The Negotiations:
The sharks express reservations due to the early stage of the product, lack of sales, and potential patent conflicts. Lori Greiner and Kevin O’Leary both decide to opt out of the deal. Mark Cuban raises concerns about the product’s practicality, expressing doubts about his own kids driving each other crazy using it. Barbara Corcoran, however, sees potential in the founders and the product’s marketability.
She offers $100,000 for 33 1/3% equity, along with a $2 royalty per sale until her investment is recouped. She emphasizes her commitment to guiding the founders in building their business, providing expertise in branding and marketing. The founders accept Barbara Corcoran’s offer with enthusiasm, expressing gratitude for her belief in their idea.
Barbara sees similarities between their story and a past successful investment in a product called The Comfy, underscoring her confidence in their potential success. The negotiation concludes with the founders excited about the partnership and the prospect of growing The Space Traveler with Barbara’s support.
